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Estimate the price-sales ratio of the firm

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Design Corp is a specialty furniture retailer with revenues of 2.5 billion, and a book value of equity of 500 million. If the firm is in stable growth, growing 6% a year and has a payout ratio of 60%, estimate the price/sales ratio of the firm. The beta is 1.00, and the treasury bond rate is 6.5%.

Reference no: EM131044497

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